The recent „Europe Online Payment Methods Report 2013 – First Half 2013“ report by Hamburg-based secondary market research company yStats.com provides information about the movement toward online and mobile purchase transactions. The report is based on recently published information from a variety of sources and details the latest trends and news on the topic, with projections of continued growth in the next few years.

EUROPE ONLINE PAYMENT METHODS REPORT 2013 About yStats.

com FIRST HALF 2013

Publication Date: May 2013

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About yStats.com

About yStats.com • yStats.com provides secondary market research.
• Market reports by yStats.com inform top managers about recent market trends and assist with strategic company decisions. • yStats.com has been committed to researching up-to-date, objective and demand-based data on markets and competitors from various industries since 2005. • In addition to reports on markets and competitors, yStats.com also carries out client-specific research. • Clients include leading global enterprises from various industries including B2C E-Commerce, electronic payment systems, mail order and direct marketing, logistics as well as banking and consulting.

Key Findings
Online and mobile payments are increasing in Europe, with new channels emerging
The recent „Europe Online Payment Methods Report 2013 – First Half 2013“ report by Hamburg-based secondary market research company yStats.com provides information about the movement toward online and mobile purchase transactions. The report is based on recently published information from a variety of sources and details the latest trends and news on the topic, with projections of continued growth in the next few years. In Central Europe, awareness of mobile payment methods was relatively high in 2012, reaching over two-thirds of mobile Internet users in Germany, Austria and Switzerland. The usage rates, however, were much lower, reaching a small two-digit percentage share. The most used online payment methods in German B2C E-Commerce in the second half of 2012 were credit card, invoice and PayPal. Mobile NFC based payments were not yet spread in Germany in 2012, but are expected to increase in use as banks, credit card companies and telecom operators test the technology involved. The Otto Group launched the mobile payment project called Yapital in early 2013. In Western Europe, the United Kingdom and France are on the path to adoption of alternative payment methods. In the UK, payment by card held the largest share of total payments in B2C E-Commerce in 2012, followed in distant second by micropayment services. Mobile payments are expected to increase in use in the UK, as the UK Payment Council plans to launch a secure mobile payment service in spring 2014 and PayPal plans to offer a mobile payment solution with the name of PayPal Here in summer 2013. In France, bank card was the preferred online payment option in B2C E-Commerce in 2012, followed by micropayment services. Countries in Eastern Europe are also participating in the movement to online and mobile payments. In Russia, cash remained the main payment method in B2C E-Commerce in 2012, but online payments gained in both awareness and usage. By far the most popular among online payment methods in the beginning of 2013 was bank card, followed by e-money and online banking. Electronic payment providers in Russia saw a significant growth in revenue in 2012. Payment via Internet bank was the most preferred payment method in B2C E-Commerce in Poland in 2012. In Turkey, online payments by bank cards grew by a third in 2012. Mobile payments were also on the rise in Turkey, reaching a high double digit number in millions of Euros. By 2015, it is expected to reach a large triple-digit figure.

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Europe Online Payment Methods Report 2013 - First Half 2013

Table of Contents (1 of 3)
1. 2.
• • •

MANAGEMENT SUMMARY EUROPE (REGIONAL)
Payment Methods Used in M-Commerce, in % of Mobile Shoppers, Q3 2012 Willingness to Pay Extra Fees for Using Mobile Payments, in % of Consumers, 2012 Share of Bank Customers Who Have Used PayPal for Mobile Payments, by Country (Germany, UK, France), in %, June 2012

5. EASTERN EUROPE 5.1. RUSSIA (TOP COUNTRY) (cont.)
• Online Payment Penetration Rate, in % of Internet Users, by Macro-Region and by Type of Location, March 2013 Breakdown of Online Payment Users, by Gender and by Age, in %, March 2013 Breakdown of Online Payment Users, by Income and by Macro-Region, in %, 2012 Usage of Mobile Banking and Internet Banking, in % of Population, May 2012 Annual Growth of Electronic Payment Systems Website Audience, by Provider, in %, August 2012 Online Payment News about Qiwi, 2013 and Revenue of Qiwi, in RUB million, 2010-2012 Online Payment News about Sberbank and Yandex, 2012/2013 Mobile Payment News about VimpelCom and Net Element International, October 2012

4.4. ITALY
• • Most Preferred Payment Methods in B2C E-Commerce, in % of Online Shoppers, April 2012 Breakdown of the Last B2C E-Commerce Purchase, by Payment Method, in % of Online Shoppers, 3 Months to February 2013

5.3. ESTONIA
• Volume and Value of Non-Cash Payment Transactions, by Type, in pieces and in EUR million, 2012, and Average Value per Transaction, by Type, in EUR, 2012 Value and Volume of Debit Card Payment Transactions, by Type, in EUR million and in thousands, 2011 & 2012 Value and Volume of Credit Card Payment Transactions, by Type, in EUR million and in thousands, 2011 & 2012

5. EASTERN EUROPE (cont.) 5.10. TURKEY (cont.)
• Value of Online Payment Transactions with Debit and Credit Cards, by Domestic and International Transactions with Domestic Cards and Domestic Transactions with Domestic and International Cards, Q1 2011 - Q1 2013 Total Number of Cards, by Credit and Debit Cards, 2008 - 2012 Share of Mobile Payments on Total B2C E-Commerce Payments, in %, 2012e - 2015f Mobile Payment News about Turkcell, October 2012

5.7. LITHUANIA
• Volume and Value of Non-Cash Payment Transactions, by Type, in millions and in LTL million, 2012, and Average Value per Transaction, by Type, in LTL thousands, 2012 Number and Value of Card Payments, by Card Type, 2012, in % Change Compared to 2011 and Average Value per Payment, by Card Types, in LTL, 2012 Number of Payment Cards and in % Change, Q4 2010, Q4 2011 & Q4 2012 • • •

SAMPLE OUTPUT: METHODS
RESEARCH ON INTERNATIONAL MARKETS
We deliver the facts – you make the decisions
Transaction Volume
Methods

SAMPLE OUTPUT: TRENDS
RESEARCH ON INTERNATIONAL MARKETS
We deliver the facts – you make the decisions
Transaction Volume

Methods

Trends

Users

Players

Trends

Users

Players

By 2016, “E-Money” is expected to account for 16% of B2C E-Commerce sales in South Korea, up from 2% in 2012.
Region A: Breakdown of B2C E-Commerce Sales, by Payment Methods, in %, 2012 & 2016f
2012
E-Money 2,0% Others 1,8%

Offline and online payment methods are merging more and more, which is expected to result in offline payment methods disapp
Global: Online Payment Trends, 2012
 As online shoppers become more global in the way they purchase products and services online, the payment methods need to do so too.  A general tendency is that online shoppers only need a limited amount of different payment methods to obtain the global reach they want. In addition, consumers tend to stay with the online payment methods they are familiar with.  Also, the eastern and the western hemisphere do not offer the completely same payment methods. Online merchants that want to operate on a global scale, however, need a service provider than can give them access to payment methods from everywhere.  Payment providers, on the other hand, are expected to have a hard time increasing their number of consumers. Therefore, payment providers that want to expand their reach often look for brand names based in other regions.  Offline and online payment methods are merging more and more, which is expected to result in the offline payment methods disappearing completely.

2016f
E-Money Other 15,6% 0,4%

Money Transfers 22,6%

Money Transfers 20,5%

Credit Cards 61,2%

 Mobile devices with Internet access allow making online payments from practically anywhere, also making it more difficult to distinguish between online and mobile payments.  In order to gain market shares, online payment providers may add functionalities to their offering with the aim of distinguishing themselves from their competitors. These added functionalities, however, may affect the checkout negatively in terms of speed and conversion.  Leading global online payment systems are provided by PayPal and Amazon, with Google and China’s Alipay trying to increase their own market shares.  Digital wallets are a rather new way of paying online and have been the topic of a battle between Google and Visa. Both companies launched their respective versions called Google Wallet and V.me, in order to get most market shares.
Source: to be mentioned in the report

Crecit Card 73,6%

Source: to be mentioned in the report

2

1

SAMPLE OUTPUT: TRANSACTION VOLUME
RESEARCH ON INTERNATIONAL MARKETS
We deliver the facts – you make the decisions
Transaction Volume
Methods

SAMPLE OUTPUT: PLAYERS
RESEARCH ON INTERNATIONAL MARKETS
We deliver the facts – you make the decisions
Transaction Volume

The payment system RuRu was launched in Russia in June 2011 as a cooperation between Alfa-Bank and VimpelCom.
Russia: News about VimpelCom and Alfa-Bank, June 2011

20%

 Alfa-Bank, a financial institution in Russia cooperated with VimpelCom, the operator of the Beeline mobile network in June 2011 to launch the payment system RuRu, which was designed to allow online and mobile payments, P2P money transfers and mobile remittances.  Utilities, telecoms services, fees for loans and payments to the Russian state, as well as train and air tickets and entertainment event tickets can be paid for using the RuRu platform.  Consumers need to link a default account to RuRu, which is debited every time a purchase is made through RuRu.  Following the launch of RuRu, only the Beeline mobile account could be charged to transactions made using the payment service. However, it was planned to extend the service to include other mobile network operators as well.  Besides mobile accounts, purchases made via Beeline can also be charged to WebMoney accounts, Visa and MasterCard credit cards.

Methodology
General Methodology of our Market Reports: • The reports include the results of secondary market research: By using various sources we ensure maximum objectivity for all obtained data. As a result companies get a precise and unbiased impression of the market situation. • • • Cross referencing of data was conducted in order to ensure validity and reliability. The reports contain a Management Summary, summarizing the main information provided in each chapter. Besides providing information on the specific topic, every chart contains an Action Title, which summarizes the main statement of the chart and a Sub Title, which gives information about the country, the topic, the unit or currency, and the time period the dataon the chart refers to. • Furthermore, the source of information and its release date are provided on every chart. It is possible that the information included in one chart is derived from several sources. Then, all sources are mentioned on the chart. • If available, additional information about the data collection, for example the time of survey and number of people asked, is provided in the form of a note. In some cases, the note (also) contains additional information needed to fully understand the contents of the respective data. • When providing information about amounts of money, local currencies were mostly used. When referencing them in the Action Title, the EUR values are also provided in brackets. The conversions are always made using the average currency exchange rate for the respective time period. Should the currency figure be in the future, the average exchange rate of the past 12 months is used. • The reports include mainly data from the last 12 months. The exact publication dates are mentioned in every chart.

Methodology for our Online Payment Market Reports: • The Online Payment market reports include information about leading payment methods in B2C E-Commerce, recent trends on the payment market, information about the online payment transaction volume, statistics about online payment users, as well as strategic news about relevant players on the market. • The “Methods” chapter includes information about the leading payment methods in B2C E-Commerce in the relevant country or region. For example, a breakdown of B2C E-Commerce sales by payment methods, or a ranking of the most popular payment methods could be included. These payment methods not only include payment procedures (such as credit card, bank transfer or online payment), but also payment companies (such as PayPal, iDeal, etc.). • The “Trend” section includes mostly qualitative information about trends in online payment. The information included in this chapter allows the reader to identify future trends. • Moreover, the Online Payment report includes information about the “transaction volume” in online payment, for example development of the volume over time. • • The “Users” section includes statistics about online payment users, for example the number or the development over time. Finally, the reports include strategic information about relevant players in online payment, for example about new products of a market player, or the expansion to another market.

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Europe Online Payment Methods Report 2013 - First Half 2013

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